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Tuesday's Energy Stocks: CMS Energy, NextEra fall after downgrade; power stocks lag

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Essential Energy Insights - February 2021

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Six trends shaping the industries and sectors we cover in 2021

Six trends shaping the industries and sectors we cover in 2021


Tuesday's Energy Stocks: CMS Energy, NextEra fall after downgrade; power stocks lag

Following an analyst's downgrade,shares of CMS Energy Corp.tumbled 2.16% on light volume to finish at $41.77 on Tuesday, April 5.

Macquarie Capital (USA) Inc. downgraded the company to "neutral"from "outperform" based on less attractive valuation. The brokerage preferredMichigan's other major investor-owned electric and gas utility, , to CMS, saying DTE hasa comparatively better valuation with the supportive regulatory and political environmentin the state.

DTE Energy shares crumbled 1.84% in average trading to closethe day at $89.05. Utility stocks generally declined inTuesday's session.

Shares of NextEraEnergy Inc. fell 2.00% on below-average volume to end the session at$116.35, after Macquarie Capital (USA) separately downgraded the company to "neutral" from "outperform."The brokerage lowered the stock based on its concern that the company could facenegative credit rating implications due to its rapid growth.

Covanta HoldingCorp. shares retreated 2.05% to settle at $16.28 after its subsidiaryCovanta Environmental Solutions LLCacquired a material processingfacility in Augusta, Ga., from USEcology Inc.

Shares of DominionResources Inc. lost 2.05% to $73.05 on more than double average volumeafter the company said it is selling10,200,000 shares of common stock through a registered underwritten public offeringto Citigroup, for about $750 million of gross proceeds. The net proceeds from theoffering will be used for general corporate purposes, including to fund in partDominion's acquisition of QuestarCorp. and to repay short-term debt including commercial paper.

Questar shares earned 1.49%, to $25.21, on heavy volume.

Shares of FortisInc. saw a 0.78% drop to C$40.50, on light volume, after it completedits acquisition of AitkenCreek Gas Storage ULC, which owns 93.8% of the largest natural gas storage facilityin British Columbia, from ChevronCanada Properties Ltd.

Spark Energy Inc.shares finished 2.54% higher at $18.97 after the underwriters of the company's secondaryoffering fully exercisedtheir overallotment option to purchase an additional 225,000 shares.

Shares of SouthernCo. dipped 1.71% to settle at $50.65 after it and AGL Resources Inc. reached a settlement agreement with most intervenors and regulatorystaff of the Georgia Public Service Commission regarding the proposed merger ofthe two companies.

AGL Resources shares dipped 0.28% to $65.23.

The SNL Energy Index closed down 1.72% to 253.09; the SNL ElectricCompany Index fell 1.85% to 413.35; and the SNL Merchant Generator Index ended down1.79% to 93.85.

In the midstream energy space, shares of Spectra Energy Corp plunged 4.59% on strong volume to endat $28.90, after a joint statement said the company, in an agreement with , willacquire in a private placementabout 9.1 million common units representing limited partner interests in the partnership,at $45.96 per unit.

Spectra Energy Partners shares slipped 1.09% to $46.40 in aboutaverage trading.

Worst performer in the midstream energy sector was , shares ofwhich dropped 8.23% in below-average trading to settle at $7.81. Shares of shed6.25% to $1.05, while Blueknight EnergyPartners LP slid 4.07% to $4.71.

The SNL Midstream Energy Index closed 1.46% lower at 91.88.

While majority of energy stocks finished Tuesday trading in thered zone, most coal companies enjoyed gains during the session.

Increases in coal sector stocks were led by , shares ofwhich surged 3.70% in light trading to close the day at $11.49. Shares of jumped 3.04%to settle at $14.24, whereas NaturalResource Partners LP shares lifted 1.27% to $7.97. Shares of saw a 1.12% riseto $4.51.

The SNL Coal Index picked up 1.04% to 38.25.

The Dow Jones Industrial Average dipped 0.75% to 17,603.32 andthe S&P 500 dropped 1.01% to 2,045.17.

Market prices and indexvalues are current as of the time of publication and are subject to change.